Blackbaud, Inc. (BLKB) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Blackbaud, Inc. (BLKB) Technology Profile & Competitive Position

Blackbaud, Inc. delivers cloud-based software solutions tailored for nonprofits, educational institutions, and social good entities, offering tools for fundraising, CRM, and financial management. With a focus on the social sector, Blackbaud distinguishes itself through specialized solutions and a deep understanding of its clients' unique needs.

What Is the Investment Thesis for BLKB?

The company's recurring revenue model, driven by subscription-based offerings, provides stability and predictability. Blackbaud's focus on the social good sector offers a niche market with specific needs, differentiating it from broader software providers. The company's current P/E ratio of 13.61, combined with a profit margin of 12.4% and free cash flow of $0.23 billion, suggests potential for value appreciation. Growth catalysts include expanding its product offerings and increasing market penetration within its target sectors. Potential risks include competition from other software providers and the need to continually innovate to meet evolving customer needs.

Based on FMP financials and quantitative analysis

BLKB Key Highlights

Market Cap of $2.04B reflects Blackbaud's significant presence in the nonprofit software market.

• P/E Ratio of 13.61 indicates a potentially undervalued stock relative to its earnings.
• Profit Margin of 12.4% demonstrates the company's ability to generate profit from its revenue.
• Gross Margin of 59.2% highlights the efficiency of Blackbaud's software solutions and service delivery.
• Free Cash Flow of $0.23B indicates strong financial health and the ability to reinvest in growth initiatives.

Who Are BLKB's Competitors?

BLKB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BLKB's Key Strengths?

Strong market position in the nonprofit software sector.

• Comprehensive suite of integrated solutions.
• Recurring revenue model from subscription-based offerings.
• Established customer base and long-term relationships.

What Are BLKB's Weaknesses?

Reliance on the social good sector, which can be sensitive to economic downturns.

• Potential for slower growth compared to broader software markets.
• Need to continually innovate to meet evolving customer needs.
• Dependence on direct sales force for customer acquisition.

What Could Drive BLKB Stock Higher?

Continued adoption of cloud-based solutions by nonprofits.

• Launch of new software features and integrations.
• Expansion of Blackbaud's international presence.
• Strategic partnerships with other technology providers.
• Increasing demand for data analytics and insights within the social good sector.

What Are the Key Risks for BLKB?

Financial-distress signal — its Altman Z-Score of 1.16 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $2.1M recently.
• Economic downturns impacting nonprofit funding.
• Competition from other software providers.
• Cybersecurity threats and data breaches.
• Changes in government regulations affecting the nonprofit sector.
• Integration challenges from strategic acquisitions.

What Are the Growth Opportunities for BLKB?

• Expanding Cloud-Based Solutions: Blackbaud can capitalize on the increasing demand for cloud-based solutions within the nonprofit sector. By further developing and promoting its cloud offerings, such as Blackbaud Raiser's Edge NXT and Blackbaud Financial Edge NXT, the company can attract new customers and drive revenue growth.
• Increasing Market Penetration: Blackbaud has the opportunity to increase its market penetration within its existing target sectors, including higher education, K-12 schools, healthcare organizations, and faith communities. By expanding its sales and marketing efforts and focusing on customer acquisition, the company can grow its customer base and increase its market share. This growth opportunity is ongoing and can be realized through targeted marketing campaigns and strategic partnerships.
• Cross-Selling and Upselling: Blackbaud can leverage its existing customer relationships to drive growth through cross-selling and upselling. By offering additional solutions and services to its current customers, the company can increase its revenue per customer and improve customer retention. This strategy can be implemented immediately and offers a cost-effective way to drive growth.
• Strategic Acquisitions: Blackbaud can pursue strategic acquisitions to expand its product offerings, enter new markets, and gain access to new technologies. By acquiring complementary businesses, the company can strengthen its competitive position and accelerate its growth. This growth opportunity is ongoing and requires careful evaluation of potential acquisition targets.
• International Expansion: Blackbaud has the opportunity to expand its international presence and serve a broader customer base. By entering new geographic markets, the company can tap into new revenue streams and diversify its business. This expansion requires careful planning and execution, but it offers a significant long-term growth opportunity.

What Are BLKB's Competitive Advantages?

• Specialized expertise in the social good sector.
• Comprehensive suite of integrated solutions.
• Established customer base and long-term relationships.
• Proprietary technology and intellectual property.
• Strong brand reputation within the nonprofit community.

What Does BLKB Do?

Founded in 1981 and headquartered in Charleston, South Carolina, Blackbaud, Inc. has evolved into a prominent provider of cloud software solutions for organizations in the social good sector. The company's mission is to empower nonprofits, educational institutions, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents to drive impact. Blackbaud's comprehensive suite of solutions includes fundraising and relationship management tools like Blackbaud Raiser's Edge NXT and Blackbaud CRM, marketing and engagement solutions such as Blackbaud Luminate Online, and financial management solutions including Blackbaud Financial Edge NXT. The company also offers grant and award management, organizational and program management, and social responsibility solutions. Blackbaud serves a diverse customer base across the United States and internationally, offering solutions through a direct sales force. With a history spanning over four decades, Blackbaud has established itself as a key technology partner for organizations striving to make a difference in the world.

What Products and Services Does BLKB Offer?

• Provides cloud-based fundraising and relationship management software.
• Offers marketing and engagement solutions for nonprofits.
• Delivers financial management software tailored for social good organizations.
• Provides grant and award management solutions.
• Offers organizational and program management tools.
• Provides social responsibility solutions for corporate giving.
• Facilitates payment processing through Blackbaud Merchant Services.
• Offers data enrichment and analytics services.

How Does BLKB Make Money?

• Subscription-based revenue from cloud software solutions.
• Fees from payment processing services.
• Revenue from professional services, including implementation and training.
• Sales of software licenses and related services.

What Industry Does BLKB Operate In?

Blackbaud operates within the application software industry, catering specifically to the social good sector. This sector is experiencing increasing demand for cloud-based solutions that can streamline operations, enhance fundraising efforts, and improve donor engagement. The market is competitive, with various players offering software solutions for nonprofits. Blackbaud differentiates itself through its comprehensive suite of solutions tailored to the unique needs of this sector. The company's established presence and deep understanding of the social good market position it favorably within the industry.

Who Are BLKB's Key Customers?

• Higher education institutions
• K-12 schools
• Healthcare organizations
• Faith communities
• Arts and cultural organizations
• Foundations

Blackbaud, Inc. (BLKB) Valuation Context

Valued at $2.04B, BLKB is classified as a mid-cap stock. Analyst price targets span from $30.00 to $55.00, with a consensus of $46.33. At the current price of $45.04, that implies approximately 3% upside potential. Relative to its peer group, BLKB's quantitative score of 65/100 is below the peer average of 83/100.

BLKB Revenue & Earnings Trend

In Q2 FY2026, BLKB generated $290.6M in top-line revenue, marking a sequential increase of 3.4%. The company recorded net income of $35.4M, with diluted EPS of $0.79. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Technology. Across the four most recent quarters, BLKB averaged $0.80 in diluted EPS.

Company Profile

Blackbaud, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Charleston, US. The company is led by CEO Michael Gianoni. BLKB has traded publicly since 2004.

Return on equity for Blackbaud, Inc. stands at 179.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.7%, showing how much profit it generates from its asset base. BLKB trades at a trailing price-to-earnings ratio of 13.61, below the Technology sector average of ~32.70x. Its free cash flow yield is 21.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.74 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 10.5%, the inverse of the P/E and a quick read on earnings relative to price.

Blackbaud, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.16 places it in the distress zone, a signal of elevated financial risk.

Blackbaud, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.5% above estimates on average.

Over the past six months, Blackbaud, Inc. insiders filed 14 SEC Form 4 transactions — 8 sales and 6 purchases. On net that is roughly 5K shares disposed (about $2.1M), a signal worth weighing alongside the fundamentals.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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